MANILA, Philippines -A subsidiary of Japanese conglomerate Tokai Holdings Corp. will inject an additional P486.3 million capital into recently listed Repower Energy Development Corp. to fund its renewable energy expansion plans.
Tokai Holdings, through Tokai Corp., will purchase an additional 65.1 million shares or 10 percent of existing equity at P7.47 each. This will increase its stake in Repower to 20.1 percent.
The Japan-listed company, which has investments across retail, commercial and industrial markets, was an anchor investor in the initial public offering (IPO) of Repower last year, acquiring a third of the IPO shares.
READ:Repower gets Japanese group as IPO anchor investor
Once the investment is made this week, Tokai will be entitled to a seat at Repower board of directors, the Dexter Tiu-led firm said in a statement on Tuesday.
Expansion plans
“This additional capital shall serve as fuel for our expansion plans as we look to build a presence in markets we have yet to serve,” Repower president and chief executive Eric Peter Roxas added.
READ: New hydro plant helped Repower triple income in H1
Repower raised P1.15 billion from its IPO in July 2023 to partially fund the development of the 15-megawatt (MW) Pulanai and 4.5-MW Piapi hydroelectric power plants in Bukidnon and Quezon province, respectively.
Both facilities are scheduled for completion in the first quarter of 2025. These will add to Repower’s current portfolio, consisting of seven mini-hydroelectric power plants with a combined capacity of at least 11.55 MW.
The company also plans to diversify its renewable energy portfolio by pursuing wind projects, including a planned 200-MW wind farm in Quezon.